HomeMy WebLinkAboutAGENDA REPORT 1995 0315 CC REG ITEM 08CIT-
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TO: The Honorable City Council F,eTiorv:
FROM: Donald P. Reynolds Jr., Administrative Services Manager
By _
DATE: March 6, 1995
SUBJECT: Consider Budget Amendments fork general Insurance and Affordable Housing
Costs
The following report presents staff s request for additional funds making adjustments to two City
accounts that will balance with revised projected year end costs. The first request is for insurance
costs incurred above the budgeted amount which are paid from the General Fund. The second
request is to provide for additional expenses incurred this year related to the Affordable Housing
fund for the acquisition of the homes on Mallory and Braun ( ourts.
Insurance
The City's general liability insurance and property insurance increased this year as a result of the
completion of Arroyo Vista Community Center and property acquisitions made by the
Redevelopment Agency. The General Liability Policy increased $3,618, and the fire insurance
policy increased $545. Attachment "A" describes the various types of insurance policies and
compares the actual costs for fiscal year 1994/95 to those of 1993/94. There are several small
polices that were not budgeted for a combined cost of $12,77 1. Some of these costs have been
off -set by savings in other categories. Therefore, the net projected year end deficit in this line
item is $13,439.
For fiscal year 1995/96, staff is proposing that $5,000 be set aside as a reserve equal to the
amount of the deductible in the General Liability policy. By having this reserve, the City can end
several polices and save between $5,000 and $7,000 during fiscal year 1995/96. The polices
considered for deletion are those marked with a " * " in the attachment. This would convert
almost all of the City's general insurance polices to pooled self insurance with the Southern
California Joint Powers Authority,
Affordable Housing
The City incurred costs related to two affordable houses this year. A budget amendment was
made for the maintenance costs at the Mallory Court house for paint, earthquake repairs, minor
landscaping and maintenance. Actual expenses for the work on Mallory Court were slightly
higher than budgeted ($200). Similar expenses are currently being incurred at the home on Braun
Court, but no budget amendment has been made
Costs for the Braun Court house are related to one month of utility bills and landscaping. Staff
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estimates that $1,500 will be needed to pay for these costs
The City Attorney has worked on both of these property acquisitions, and the City has charged
$700 of these costs to this account. This cost was not addressed in the first budget amendment.
Both homes are currently occupied, decreasing the City's out -of- pocket expenses. The Mallory
Court home was sold this fiscal year, and the Braun Court was recently rented. To complete this
year's expenses, adding all three items referenced above equals a total amendment needed of
$2,400.
Recommendation
That the City Council authorize the transfer of funds as follows
I) Move $13,500 from the General Fund Reserve to 01.4.200.(148 to pay for
unanticipated insurance costs, and;
2) Move $2,400 from the Affordable Housing Fund Reserve to 22.4.1 17.902.
Attachment- Spread Sheet of Insurance Costs
0006
06- Mar -95
648 INSURANCE AND BONDS
BUDGET
PROJECTED
PROJECTED
pro4ected
94/95
S`�x Month
YEAR
YEAR END
ITEM
93/94 yr. end
STATUS
END
BALANCE
n Fire Poi'cv Renewal (A
1655 2967
0
5696
5696
-5696
Genera L_ab_ 'ts and Auto IA
.-02000 59564
"_38762
:.42380
:42380
-3618
Fidelity Bond (T
800 0
0
0
0
(1
Public Off_ciai Bond (T
4000 -750
1800
__750
1750
50
Property insurance (A
4000 2100
'1400
0
3897
--1497
Employee Dishonesty Bond IT`
0 "729
0
0
0
0
Of I Eqtj`p Cpt.i iSoftware iT
6054
8
CF':_A Surcharge 1 k
400 (1
_
Spec_a- Event _nsurance
0 A,e
500
0
u
500
2855 ;' "_53-
43462
53004
56894
_3439
General Liab`' tv Ins. covers
these but wLth a
$5,000 Deductab e.
Recommendation -s to cauce* these po?. :_ces but hold 65;000
-n reserve
from the Genera'- Fund
iA - "AUTHORITY," OR SCPIA; IT
=: "TOLMAN AND WIKER"
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